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MAMMOTH LAKES HOUSING, INC. Board of Directors Meeting
Monday, July 2, 2018 Meeting at 5 p.m.
COUNCIL CHAMBER, 437 OLD MAMMOTH ROAD MINARET VILLAGE SHOPPING CENTER, SUITE Z
Agenda
NOTE: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact Mammoth Lakes Housing, Inc. at (760) 934-4740. Notification 48 hours prior to the meeting will enable
Mammoth Lakes Housing, Inc to make arrangements to ensure accessibility to this meeting. (28 CFR 13.102-35.104 ADA Title II)
I. Call to Order
II. Roll Call
Lindsay Barksdale, Stacy Corless, Zoraya Cruz, Tom Hodges, Jiselle Kenny, Donna Mercer, Kirk Stapp, Bill Taylor, John Wentworth
III. Workshop – Mammoth Lakes Community Housing Action Plan near-term strategies
IV. Public Comments This is the established time for any member of the public wishing to address the Mammoth Lakes Housing, Inc. Board of Directors on any matter that does not
otherwise appear on the agenda. Members of the public desiring to speak on a matter appearing on the agenda should ask the Chairman for the opportunity to
be heard when the item comes up for consideration.
V. Approval of minutes from the June 11, 2018 regular board meeting
VI. Update and Discussion of MLH – Town of Mammoth Lakes draft contract
VII. Accept the Transition Plan for the Executive Director Position
VIII. Review & Direct Staff on the reserves and allocation of the fiscal year 2017/18 support & revenue over expenditures
IX. Adopt the Resolution Number 18-07 authorizing the application of a Mammoth Lakes Housing for a Home Investment Partnerships Program (HOME) Community Housing Development Organization (CHDO) application for 238
Sierra Manor Road adaptive reuse
X. Update on The Parcel, formerly known as the Shady Rest Parcel, for workforce
housing owned by the Town of Mammoth Lakes – informational item
XI. Board Member reports
XII. MLH Monthly Status Report
XIII. Adjourn
July 2, 2018
WORKSHOP
Mammoth Lakes Community Housing Action Plan
NEAR TERM HOUSING STRATEGIES - (in place by the end of 2020)
Fourteen near term strategies are included in the 2017 Mammoth Lakes Community Housing Action Plan.
There are a range of strategy types including policies, partnerships, and funding sources, for example.
The following pages are from Appendix C of the Action Plan. These pages provide general information on
the strategies, actions for implementation, and who is to take the lead and support roles. Each strategy
has a Priority Rank that was informed by the Housing Working Group and the community through the nine-
month long plan development process.
Mammoth Lakes Housing is actively engaged in the application for federal and state grants and loans,
and continues to regularly house locals using the community homebuyer assistance programs, both of
which are included in the near-term strategies that MLH has been identified in the lead role for
implementation responsibilities.
The following near term strategies are presented in order of Priority Rank as identified by the Action Plan.
2
Short Term Rental Tool: Restrictions, Incentives, Tracking
Restrictions may include prohibitions in zones where residents and employees reside,
limiting the number in defined areas, requirements that units be occupied as primary
residences part time, prohibiting STR of deed restricted housing.
Incentivizing conversion to long term rentals (LTR) may include providing rent
guarantees and property management in exchange for renting units long term that
were vacant or rented short term.
Example: Summit County, Colorado (property management incentive program)
Issues
In General
The short-term rental market affects the demand for community housing both from
the supply side, by removing long-term rentals and homes previously owned by local
residents from the market, and the demand side, through increased job growth to
provide services to the short-term visitors and the rental properties.
With the explosive growth in short-term vacation home rentals enhanced by
websites such as VRBO, Airbnb and other online hosting sites, STR concerns are in the
forefront within most every high-cost mountain resort community.
Concerns range from a loss of long-term rental units for residents, increased low-
wage jobs, TOT tax collections, impacts on hotel/lodging, and neighborhood
concerns: parking, noise, trash, transient “neighbors,” etc.
Specifics on the Summit County property management program:
Housing Authority manages the units; monthly inspections; guaranteed rent for term of the lease (property owners
contact Authority if interested)
Family and Intercultural Resource Center (FIRC) locates/qualifies tenants, tenant education program (renters contact
FIRC if interested)
Summit Foundation special initiatives grant to finance the program; cost is about $2,500/unit/year so far.
Goal – convert up to 45 units
Current Impact
STR Units: About 20% of housing
units (over 1,900)
Resident Housing: Near 200
renters displaced over past 3
years due to unit converting to
STR (60) or being sold (125).
Mostly low to middle renters
(below 120% AMI)
3
Tenant households must earn $40-100K/yr; be employed year-round in county (want to provide for higher income
target than low-income housing)
4
Mammoth Lakes Specific (see HNA, pp. Part A – 66 to 70)
The town has issued 827 short-term rental BTC to unit managers and owners of condominium, multi-family and single-family
homes. Over 35% have signed up since the Town increased its regulation of units in 2011.
The Town has record of 1,998 TOT Certificate units associated with the 827 BTC (incomplete list). About 97% of TOT Certificate
units are owned by out-of-area owners.
TOT collections comprised 67% of the General Fund in 2016; collections from condominium and apartment rentals
(excludes hotels/motels and RV Parks/campgrounds) comprised 69% of TOT collections in 2016/17.
About 1,786 units were listed on Airbnb in June 2017, comprising near 18% of housing units in town. Listings increased from
12 on average in 2012 to over 1,100 in 2016.
About 98% of June 2017 listings leased the entire home; very few offered a private or shared room (2%). About 17% of
advertised units can be rented for short-term use during most of the year (10 to 12 months) (NOTE: these are perhaps the
most likely candidates for conversion to long-term rentals). The largest percentage of units (43%) is available for three-
months or less per year.
Local Realtors have observed that:
When current owners of long-term rental units sell their homes, out-of-area buyers are most likely to purchase them
and either short-term rent the homes or otherwise take them off of the long-term rental market.
There are very few investment buyers seeking to only short-term rent the homes; most buyers want to use the homes
themselves part of the time.
Areas zoned for short-term rentals can demand higher prices.
Calls from sellers and buyers have increased since the Aspen/KSL purchase announcement, asking about
opportunities.
As of 2014, land values in the RMF-2 zone were over 3-times higher than in the RMF-1 zone. Most of this is attributed to the
ability for transient (short-term rental) use in RMF-2. This affects the ability to build affordable units in the RMF-2 transient-use
zone. (HNA, p. Part B (2) – 22).
5
Matching roomies to second-homeowners - Increase occupancy of
vacant/second home units by marketing and linking roommates to second
homeowners.
Component of the Employer tenant-matching program. Will have central
database of employees, housing units, etc. to pull from (see above and
Public Private Partnerships section).
For STR expansion:
May need some rent controls/guidelines so roomies can afford homes.
May need a website (upgraded buy/sell/trade, more user
friendly/sortable)
Outreach to homeowners – combine with education of benefits of
having an occupant in their home.
Can we link property managers into this system – when they have a
tenant searching for a particular type of unit/change of home?
Who
Chamber manage
employee-tenant
data; MLH and Town
support link to
second homeowners
(roles TBD)
When
Near term:
within 2 years
Amnesty for non-permitted STR: Waive/reduce non-compliance fees if illegal
STRs convert to long-term rental.
Outreach to educate homeowners of the program – BTC/TOT
Certificate licensing, utility bills, notification with property tax bill,
other?
Increased enforcement will improve the potential of this program
Pair waiver with long-term rental restriction:
Define term of rental period
Define affordability level (missing middle, other)?
Define limits to extent of violation that can be waived (truly
reckless, no waiver; revenue violator vs. zoning violator; etc.)
Retain purpose of Measure Z in defining program
Compliance with rental restriction, qualifying tenants (MLH?)
Enforcement of restriction (Town)
Case-by-case review likely required to determine suitability for waiver:
Town lead, MLH
support
Near term: 1 to
2 years
6
Current violations are sent to district attorney: case-by-case review
This can also link with property management incentive program and LTR
inspection/licensing program once in place.
7
FUTURE LAND ACQUISITION FOR DEVELOPMENT*
Acquiring land through purchase or trade for eventual housing development when specific project not
known.
Issues
In General
A prioritized inventory of publicly owned parcels enables ability to define the
development program, plan for and package needed funding, create partnerships
and provide a predictable pipeline of new housing. An RFP/RFQ process is effective
for selecting development partners.
Housing may compete with other desired uses of public parcels.
Public ownership of land can be retained using long term leases, although this
approach may complicate financing.
Alternative means of acquisition aside from purchase may include:
Friendly eminent domain, which can be negotiated with the land owner to
mutual benefit when the amount of just compensation is not in dispute. Risk promoting resentment, bad public
relations for future housing acquisitions or legal challenge if proceed before agreed-upon price.
USFS land acquisition through land trade; public safety nexus (in essence “takes” public land); assign administrative
land use to federal land, which permits housing to be constructed, but the USFS retains ownership.
Mammoth Lakes Specific (see HNA, p. Part B (2) – 1; below land map)
About 275 acres in Town are presently undeveloped, not entitled, or contain uninhabitable structures. Many are single lots.
Roughly 40 parcels are ½-acre or larger and may be candidates for future housing.
Session 2 Comments:
Acquisition of Shady Rest tract through eminent domain (as we acquired bell shaped property) (Yes votes 10; No votes 2)
Federal Land Conveyance without Exchange (Public Safety Nexus) (Yes votes 7; No votes 1)
USFS Land Within Town Boundary (Yes votes 3; No votes 1)
*Four tools received a score of 6
votes
Potential Impact
How much: TBD
For whom: Varies; typically
below 150% AMI (low to
moderate)
8
Shady rest still waiting for development
Implementation Recommendations – Future Land Acquisition for Development
Action Who When
Lode Star Drive - Abandoned foundation; owned by MMSA
Lead? New housing planner for Aspen Ski Co? Talk with mountain.
Great location
Replicate what is net door, but improve (elevator? Exterior?)
Likely for mountain employees, but TBD
Partnership with town might help facilitate development/improve
viability.
Town and MMSA Near term: 12-
24 months
Shady Rest
Acquire: Town in closed session with a willing seller. Town Near term:
Within 12-
months?
Planning/Design (after acquisition). Next step: get a good plan:
Cooperative partners KEY: transit, non-profit, private, Town, MLH
Engage stakeholders, neighbors, potential consumers, community.
Town lead/coordinate visioning through meaningful community
engagement? Incorporate info from this Plan, Needs Assessment,
Walk/Bike/Ride, Master Plan. Consider range of current needs, but
build on the current framework.
Likely current community expectation is that it will be built per
MLH’s master plan 250 units that are deed-restricted for ownership
and rental up to 120% AMI. Existing master plan is a mix of unit
types; reflects the priorities at the time.
Large, central parcel. Development can make or break this part of
town: planning, circulation, infrastructure, phasing, spend time to
get it right.
We know we want community housing; but are there other needs –
amenities, transit, green space, etc.
Multiple –
cooperative partners
are key.
Town lead, MLH
support; community
members,
stakeholders, etc.
Begin after
purchase: near
term process:
12 to 24
months
9
Develop guiding principles to set goals, phased development.
Entitlements, Finance:
Evaluate financing options – Cap and Trade (infrastructure, housing),
etc.
Town lead, MLH
support
Near- to Mid-
term: 3 to 6
years
Construction – first phase; contract with developer(s) Town lead; MLH
support
Construction
7+ years
10
HOMEBUYER ASSISTANCE*
Down payment assistance in the form of grants or second mortgages to assist
qualified buyers to purchase a home.
Issues
In General
Homebuyer assistance funds may be used for purchasing deed restricted or market
rate homes. Participation in financial counseling and homebuyer education are often
requirements.
Second mortgages may be forgiven after the household owns the home for a
specified amount of time. Some programs utilize a shared equity model, returning
funds to the program when a home is sold and allowing the seller the remaining
equity. Payments on second mortgages can also support a “revolving loan fund”
approach.
Homebuyer assistance enables specific households to attain housing, but does not
increase the inventory of workforce housing for the long term. There must be homes available to purchase at relatively
affordable price points for the program to succeed.
Examples: Mammoth Lakes, CA; Truckee, CA (had 160% AMI program, Martis Fund program up to 180% AMI)
Mammoth Lakes Specific:
Mammoth Lakes Housing operates a successful homebuyer assistance program. Grant sources include both Federal
programs (HOME and CDBG) and State of California programs (CalHome, BEGIN and HELP). Assistance is limited to
households earning under 80% AMI or up to 120% AMI for purchases in Aspen Village, Meridian Court, San Joaquin Villas.
The program is popular with buyers, Realtors and lenders. The primary limiting factor is availability of homes at the price
points required (below $380,000; updated annually by CA Hsg and Cmty Dev (HCD)). Households earning incomes higher
than the limits (80% or 120%) want access to this assistance.
Session 2 Comments: Yes votes: 3 (+8 for Homebuyer/Renter combined) No votes: 0
Promote existing homebuyer assistance program; Improve NAVIGATION of existing program;
Current Program
How much: 60 active loans
through MLH (20 in market rate
homes, 40 in deed-restricted)
For whom: <80% AMI; <120% AMI
for limited properties
11
More missing middle focus; many can’t afford down payments and can’t qualify for Government or private help.
Implementation Recommendations – Homebuyer Assistance
Action Who When
Use a portion of a dedicated funding stream to extend the program for
higher income households and larger grant amounts. Program outline:
Use Unrestricted dollars – to serve 80% to 200% AMI
17/18 budget supplemental – start with a modest amount ($250,000?)
Locate draft guidelines which have been submitted to Town
Manager; revisit and sync with Plan adoption process.
Outreach! Market program and availability – lenders, real estate
agents, employers/employees, property managers, community
MLH to administer;
Town to fund
Near term:
17/18 start
small with
budget
adjustment
18/19 ramp up
Employer program: (see also Public Private Partnerships section)
Learn from existing employers with programs – MMSA, Water District
MLH has assisted employers in the past – expand outreach/education
Develop a model policy like for the renter program? Direct assistance
program through MLH? TBD
MLH; Chamber or
Employer working
group collect info?
Near term: 12-
24 months
Program development considerations:
More help for missing middle; current AMI levels are too low in this
market.
Build on existing MLH structure
Track current program – loans are deferred until time of refi or sale,
matures at 30 years. How much does the current program revolve?
(MLH info)
Cap at 50% of down payment; buyer brings the rest?
Include admin fee for this program in MLH/Town contracting
MLH does not charge interest, County charges interest in a tiered
structure – interest might be appropriate for the higher income loans.
MLH – continue financial counseling; credit repair aspect of support.
12
RENTER ASSISTANCE
Grants/loans for first/last/deposit or rent. Loans may be low- or no-interest.
Issues
In General
Helps renters afford to get into housing. Recipients may pay off loan over time (e.g.
monthly wage withdrawal if provided by employer).
Renter assistance typically private/non-profit funded, some social service programs.
State/federal funds if available typically limited to very specific populations (e.g. CA
Section 811 demonstration program).
Examples: Eviction Defense Collaborative (San Francisco, CA); Sierra Business Council
(Truckee, CA)
Mammoth Lakes Specific
Many employers offer assistance by providing units rented to employees – over 139
units documented in the Needs Assessment. Only one (1) of over 40 employers
responding to the 2017 Live and Work Survey reported helping with rent/security
deposits.
IMACA has utility bill assistance to households below 60% AMI. The average payment for electric assistance is $228.50 per
household per month. For wood, propane, and oil the average payment is between $300 and $600. Utility assistance is a big
help in Mammoth Lakes where utilities average about $320 per month, adding about 23% to monthly rent payments (HNA,
Part A – 58).
Session 2 Comments: Yes votes: 8 for Homebuyer/Renter combined (+3 for Homebuyer only) No votes: 0
Create a “first/last/security” rental assistance program.
Current Renter Support
What: few employers offer
rent/deposit assistance; IMACA
utility bill assistance
How much: IMACA: 400
households (owners and renters)
over 9 years in Mammoth Lakes
For whom: variable; IMACA <60%
AMI
13
Implementation Recommendations – Renter Assistance – Recruitment Tool
Action Who When
Start with employer-assisted rent program (see also Public Private
Partnerships section)
• Develop a model policy for employers to provide first and deposit re-
paid through payroll deduction. Employer is assigned the deposit refund.
Sierra Business Council (Truckee) example.
• Work with MMSA on pilot project. Technical capacity in place and ready
to pitch idea.
• Outreach to employers to shape program; educate them of its
existence
Need for broad community rental assistance is there, but don’t have
resources to commit at the moment.
Explore broader community program, with public funding, connected
to social safety net; helping to bring people out of the
woods/permanent supportive housing.
Expand utility assistance program (IMACA) – more funding available,
outreach/education?
Section 8 – limited, but don’t lose sight of the option; Voucher holders
currently do not know when units become available in the LIHTC
portfolio.
MMSA potential
lead; Chamber
and/or Employer
working group
(outreach)
TBD
Underway;
within 12-
months?
Look at again
at plan
update.
Mid-Longer
term
14
HOUSING MITIGATION REGULATIONS* AND INCLUSIONARY ZONING
The current Housing Impact Mitigation Fee policy in essence combines commercial
linkage, residential linkage, impact fee and inclusionary zoning provisions.
Inclusionary Zoning (IZ) requires that new residential subdivisions and PUD’s
include homes that are deed restricted for community housing.
Commercial linkage requires new commercial development to provide housing
or fees for a portion of employees generated.
Residential linkage requires new homes to contribute to housing for employees
relative to demand generated by residential units.
Impact fees are fees directly linked to the need for housing generated by new
development through jobs created.
In General
Many communities have a combination of inclusionary zoning and linkage programs
implemented through different ordinances.
IZ applies to new residential subdivisions, requiring a percentage of units to be
affordable. Ranges vary between 5% (effective base rate in Breckenridge) to 60%
(Crested Butte, CO) in mountain resort communities; 25% - 30% is about average.
Options for compliance can include: building affordable homes on-site, building or
purchasing off-site units, dedicating vacant land, providing subdivided lots or a cash
contribution to a housing fund (cash in lieu). Units built for ownership typically serve
households earning 80% AMI or higher; rentals below 80%.
Commercial and residential linkage may be applied to new development and
redevelopment. Linkage often targets lower income ranges (below 60% or 80% AMI),
related to the types of jobs that new commercial and residential development generate. A range of compliance options is
often provided to create flexibility: development on site, off site, land or fees in lieu. Nexus is required.
If development is required, design standards for affordable units must ensure desirable/livable units.
Current/Past Program
How much:
IZ (since 2001): 131 units from
below 60% up to 200% AMI. $3.5-
million in in-lieu fees; 4.34-acres
of land (all but $123,000 and 16-
units pre-2009)
Mitigation Ord (since 2015):
$100,000
For whom:
IZ: low to above-moderate
(<200% AMI);
Mitigation Ord: variable.
15
If existing housing stock is permitted to be deed restricted, guidelines are needed to ensure units are suitable for local
occupancy and purchase (e.g. not in condo-hotel complexes, low HOA fees, housing mortgage-friendly, etc.). To create
new housing stock for residents, a resident should not currently be occupying the unit.
Impact fees require a nexus and may be implemented through linkage programs or on their own. Fees fluctuate with
building activity. Residential fees imposed on a per-unit, as opposed to per square foot, basis may be a disincentive to
smaller unit development. Fees should be sufficient to support production of community housing through other methods –
public land acquisition/development, redevelopment, public/private partnership, leverage with state/federal funds, etc.
Concerns with the above include the financial burden on development, as well as:
For IZ, market-rate homes must achieve sufficient price points to support below-market prices. IZ may discourage
smaller market-homes and market-affordable solutions (e.g. “missing middle” price points).
For commercial linkage, some types of commercial development may be encouraged or discouraged if fees vary
significantly by commercial type (e.g. retail vs. bar/restaurant vs. lodging, etc.) – this can be a positive or negative
depending on the desired type of development.
Residential linkage requirements often increase with house size and may exempt homes below a certain size (e.g.,
under 1,200 sq. ft.) to avoid discouraging construction of smaller homes/homes more affordable to the community.
Development regulations, regardless of the type, are only productive if development is occurring.
Examples: Jackson WY; Breckenridge, CO; Crested Butte, CO; Truckee, CA
Mammoth Lakes Specific (see HNA, pp. Part b (2) – 11 to 12 (housing mitigation fee requirements), 22 to 24 (development
costs))
Prior IZ Regulations
Mammoth Lakes had IZ in place between 2001 and 2014.
Most of the 131 IZ housing units (42 ownership (16 remain deed restricted); 61 rentals (42 seasonal); 28 units for owner-
or renter-occupancy) were produced before 2010. Only 16 were produced since the recession (Kitzbuhel Apts). Of
$3.5 million in fees collected, only $123,000 was collected between 2009 and 2014. The 4.34-acres of land-in-lieu was
used for construction of Aspen Village apartments and condominiums.
IZ required all new residential and lodging developments with more than nine residential units or 19 lodging units to
construct 10% of units for households earning 120% AMI or less. Projects under the threshold could pay a fee-in-lieu of
providing the required housing.
16
Current Housing Mitigation Fee Regulations
As of 2015, the Town has a fee-based housing mitigation policy, supported by a Workforce Housing Fee Nexus Study.
Since the change to a Housing Impact Mitigation Fee, at least two projects with entitlements have approached the
Town seeking to pay fees in lieu of developing IZ units.
Current mitigation fees are lower than earlier housing in-lieu fees, as shown in the below table. The Workforce Housing
Fee Nexus Study recommended adoption of fees below the maximum allowable fees found by the study. The fees
assume that the Town, Mammoth Lakes Housing, and other service providers will provide 70% of the housing
generated by new development for households at or below 60% AMI.
Comparison of Housing Fees
Use 2014
Housing Fees
2015 Housing
Impact Mitigation
Fees
Percent Change
Residential $23,000 per unit for residential
projects of nine or fewer units2 $5,700/unit1 -75%
Lodging $11,611 per room for hotels of
19 or fewer rooms $3,700/room3 -68%
Retail/Restaurant Exempt $2/sq. ft. n/a
Office $2/sq. ft. $2/sq. ft. 0%
Light Industrial $3.93/sq. ft. $1/sq. ft. -75%
Services $14.99/sq. ft. $2/sq. ft. -87%
Source: Town of Mammoth Lakes 1Exemptions include additions, RMF-1 Zone multiple family projects of 4 or fewer units where average habitable sq. ft. does
not exceed 1,300 sq. ft. per unit, legal secondary units, and apartments. 2Single-family homes less than 2,500 sq. ft. are exempt from housing mitigation (2014). 3Room = a hotel or motel key. Fee includes accessory uses in a lodging project (e.g., retail, restaurant, conference) 42014 required 10% IZ for residential >9 units and lodging > 19 units for target income of <=120% AMI
Developers may choose a desired method for housing mitigation: fee, on-site housing, off-site housing (including existing
housing stock), land conveyance, or an alternate mitigation plan. Development of units is permitted and an incentive is
17
available. If it costs more to provide a method other than the fee, the developer is eligible to receive a credit for the
difference between the cost to provide the housing unit and the fee. This option has yet to be used because developers are
opting to pay the fee.
Some product types that often serve as housing for residents and employees are exempt from the housing mitigation fee,
including:
Multi-family projects in the RMF-1 Zone (non-transient) of four or fewer units where the average habitable sq. ft. does
not exceed 1,300 sq. ft. per unit;
Secondary dwelling units;
Rental apartments; and
Live/work units.
Cost to Develop and Affordability Gap
It costs about $370,000 to develop a 1,200 square foot townhome on a RMF-1 lot with mid-range finishes. On a RMF-2 lot, the
land costs 3-times more, increasing the development cost to about $450,000. This results in an affordability “gap” for
community housing ranging between $45,000 up to $235,000 depending upon AMI income level (80% to 150%) and cost of
development.
Est. Cost to Develop 1,200 Sq. Ft. Townhome in Mammoth Lakes (HNA, pp. Part B (2) – 22 to 24)
RMF-1 lot RMF - 2 lot
Cost to Develop (1,200 sq. ft.
Townhome) $370,000 $450,000
Est. AMI Affordability level 140% AMI 170% AMI
Source: Interviews, Town of Mammoth Lakes Housing Element 2014-19, consultant team.
Maximum Affordable Housing Costs (HNA, p. Part A – 8)
AMI*
Household Income
(average 2.5-
person household)
Max Maximum
Purchase Price**
RMF-1 Gap
($370,000)
RMF-2 Gap
($450,000)
80% $54,350 $215,000 $155,000 $235,000
100% $69,025 $270,000 $100,000 $180,000
120% $82,825 $325,000 $45,000 $125,000
18
150% $103,550 $405,000 -$35,000 $45,000
200% $138,050 $540,000 -$170,000 -$90,000 *AMI for the average sized 2.5-person household earning the respective income (California HCD).
**Assumes 30-year mortgage at 5.0% interest with 5% down and 20% of the payment covering taxes, insurance and HOA fees.
Session 2 Comments:
IZ (Yes 7; No 4) - Re-institute IZ ordinance so we can get units instead of fees; look at link between IZ and commercial linkage.
Commercial linkage (Yes 3; No 0) - Commercial linkage is good—put it where burden can be handled
Residential linkage (Yes 2; No 0) - Make fees at relevant level to help solve for housing needs; will it generate timely benefits?
Impact fees (Yes 2; No 1) - Increase impact fees, decrease fees for low-to-middle (Yes).
Implementation Recommendations – Housing Mitigation Regulations*
Action Who When
Assess current fees – compare to fee amount vs. what is needed to address development
impacts/build community housing units.
Need fees to help build for the missing middle;
Need to build in line with employee household wages (lower income).
Town Near-
term: two
to three
years
Adopt a fee-increase schedule to raise fees over time to address up to 100% of the gap so
that we can build). Use market triggers to assess increase. Crested Butte example.
Depoliticizes the decision if a schedule for fee increases is adopted
Water district scheduled rate increases (example)
Scale fees based on size and intensity of project/use:
Size of home – per sq. ft. fee for residences, or scale up the per unit fee as size of home
increases (see Nexus study findings). Gets larger homes to pay more; supports those
who build smaller.
Zone/ability to short-term rent should reflect higher impact of short-term rentals over
year-round housing; the code used to differentiate but it was complicated and hard to
19
police (would build as non-transient, but then use for transient).
Ensure appropriate units continue to be exempt from fee (e.g., deed restricted homes
per ß 17.136.100)
Get units built:
Raise fees so some may opt to build (see above);
Incentivize units by assisting developers with other collected housing fees or
federal/state funds.
Pair with the Community Housing Overlay District (see Zoning for Affordability incentives
tool).
Leverage fees collected with money from state/federal sources to develop low-income
units (<80% AMI).
Require development of housing if incentives do not work (mid- to long-term)
General plan says where some of this development could occur (zoning). Do not have
specific sites planned/dedicated specifically to use collected fees to build housing.
Town Near- to
Long-term
Implementation Recommendations – Inclusionary Zoning
Action Who When
Consider re-instituting Inclusionary Zoning before development picks up/gets
away:
Assess the impact – potential for producing units;
Design IZ ordinance to have carrots along with the stick and remedy
problems with prior ordinance;
Design it to work with current land inventory/usage;
We want development to be net-neutral (only mitigate for impacts it
has).
Town Near-term:
Two-to-three
years
IZ needs to be a platform in the next election:
Constituents need to emphasize this
Town and
Community
2018 Election
20
EMPLOYER ASSSISTED HOUSING*
Employer Assisted Housing (EAH) is providing housing support to employees.
Employers can provide land and partner in development of housing. EAH is often
direct employee support, such as help with finding housing, down payment,
rent/mortgage, relocation or master leasing/providing rentals.
Support to facilitate EAH can be provided. Property management assistance
includes contracting to manage affordable rental units. Could operate where the
public sector hires private/non-profit company or private sector hires public/non-
profit.
Issues
In General
Employers may have land or capital for housing. Public agencies and non-profits
can partner with employers to provide technical assistance, property management,
support for homeownership programs and/or development of housing to facilitate
EAH.
Property management can assist employers in sharing, managing and maintaining housing. It would allow employers to not
be “in the housing business,” yet still help supply housing for their employees.
Barriers to EAH for some employers may be the high cost of housing, desire not to be involved in employees lives outside of
work, desire to not be in the housing business, or lack of capacity.
Example: Santa Barbara Coastal Housing Partnership, CA
Mammoth Lakes Specific
About 1/3 of Mammoth Lakes employers are assisting employees with housing – mostly through owned or master-leased units
rented to employees, down payment assistance, and help with housing searches. Employers have thus far acted
independently, though many communicate with each other. Employers provide over 139 units of housing for year round and
seasonal workers.
MLH has helped some employers provide down payment support.
Potential Impact
How much: TBD
For whom: Below 120% AMI
typically (low to middle)
21
Some employers that have considered owning or master-leasing rentals for their employees expressed that a desire to “not
be in the housing business” is a barrier. Others with units would prefer to not be both landlord and employer to their tenant.
Session 2 Comments: Yes votes: 7; No votes: 0 Employer Assisted / Property Management Program
Implementation Recommendations – Employer Assisted Housing *
Goal: Be a self-sufficient program (self-funded)
Action Who When
Create a working group for this effort. Include Chamber, MMSA, Hospital,
MLF, and MLH for lessons learned and leadership.
Governance:
Consider a consortium approach like Santa Barbara; Water District is
part of Employment Law and Training Consortium – which could be
another template
Explore use of the Chamber’s dormant 501c3 too as possible lead
agency.
Outreach:
Conduct outreach to small and mid-sized businesses to understand
their needs.
Market available programs to all employers once developed.
Look at opportunities with Aspen/New Co – build on their experience and
commitment to building community – help with gaps such as couples
housing, year-round options, and pet friendly housing
Chamber to lead?
Chamber lead; MLH
support (homebuyer
program?)
MMSA
Short term: 12
months
Tenant-Landlord Matching
Create opportunities for seasonal workers to stay year-round
Could existing housing stock start to do this?
Link winter employees with summer jobs too? Jobs and housing…
Expand Chamber’s job hub to also link employees to housing opportunities.
Employer Housing
Working Group
research
Near Term: 12-
24 months?
22
Central job/housing site from trusted source.
Working on getting a complete list of jobs now – housing is logical
addition.
Reach out to employers to understand their needs, unit availability, and
build pool of employee-tenants.
Also market tenants to second/vacant homes – increase occupancy of
existing homes. (see STR section)
Chamber for
database
management?
Working group
support?
Chamber? Working
group?
MLH and Town (roles
TBD)
See STR section
23
TAXES DEDICATED TO HOUSING
Sales, property, lodging, real estate transfer, excise tax can be dedicated sources for
community housing efforts.
Issues
In General
Flexible, reliable funding source; revenue stream can be written to respond to local
conditions and used for most housing-related activities.
Voter approval required in most states. Recent ballot initiatives have had mixed
results. Approval requires extensive public education.
Examples: Summit County, CO (0.725% sale tax); Telluride, CO (0.5% sales tax);
Breckenridge, CO (lift ticket tax); Vancouver, BC (empty homes tax); New York
(statewide luxury property tax)
Mammoth Lakes Specific:
Mammoth Lakes has a successful track record with the passage of Measure 2002A for an increased Transient Occupancy
Tax (TOT). This has generated an investment of nearly $15 million in community housing over the past 13 years. The full TOT is
13%. TOT accounts for over 2/3 of general fund revenues.
Council has allocated between 0.51% to 1% of TOT revenue to housing. The 2017 budget includes .85% for community
housing, anticipated to be approximately $1 million. TOT is the only local housing funding source.
Session 2 Comments: Yes votes: 6; No votes: 0
Add 1% on to luxury real estate sales to go into a housing fund to develop new projects or homeowners assistance; NYC has
proposed or adopted this & looks like success (+2);
Dedicate blend of fees and waivers to incentivize mid-level builds (“missing middle”);
COMPLIANCE for TOT restrictions and payments; Lift ticket tax;
Tax on property tax like Measure G that mostly comes from 2nd homeowners; vacancy tax to fund housing programs
*Four tools received a score of 6
votes
Potential Impact
How much: TBD
For whom: Middle to moderate
(80% to 150%)
24
Implementation Recommendations – Taxes Dedicated to Housing
Action Who When
Study a local tax measure, determine correct mechanism (property v sales v TOT),
place on ballot in 2018 (may not be time to get to a 2018 ballot at this late date) Legal
analysis necessary.
Specific recommendation was for a 2% dedication from TOT for leveraging funding from other state and federal housing programs.
Secondary recommendation is to also seek a 1% TOT increase along with the 2% dedication.
Develop staff reports for recommendation to the Town Council for TOT measure
MLH 2018-2020
Develop a specific set of actions, policies and projects that would be funded by a tax
measure.
Draft a plan for the application of the 2% TOT fund allocation for community housing
to improve voter support.
Town & MLH Short-term
Consider a temporary dedication of 2% of TOT funding while waiting for a vote on
dedicated funding.
Includes developing a policy for the use of TOT funds as leverage for other
projects or to incentivize community housing.
Create a budget for the use of temporary dedication of TOT
Town Short-term
25
FEDERAL AND STATE GRANTS/LOANS* - CDBG, HOME, USDA/RURAL DEVELOPMENT, CALHOME, AHSC; LIHTC
Major federal funding cuts proposed. Can only serve low-income households (<50%, 60% or 80% AMI), limiting their use in
mountain towns. Competitive and complicated grant application and administration process. California Affordable Housing
Sustainable Communities (AHSC) may be an exception with potential rise in fund availability and ability for mixed income
projects.
LIHTC (Low Income Housing Tax Credits): Provides project equity for public, non-profit and private developers. Market for
credits uncertain with reduction in corporate tax rate. Widely used in mountain towns. Often done through public/private
partnerships. Multifamily sites needed. Session 2 Comments: Yes votes: 0; No votes 0. Moved up in priority during Working Group discussions. Support SB 82 Believe LIHTC is very attractive…particularly for developers…who are not storming the market with projects
Action Who When
Continue use of state/public funds; track new resources.
Town; MLH 2018/19
Increase capacity for grant writing underwritten by a temporary dedication
of 2018-2019 general fund revenue.
Consider dedicated staff to work specifically on:
1. acting as an ombudsman for housing projects, and
2. staff grant application and reporting processes.
Town and/or MLH
Increase capacity to support developers in the application process for LIHTC Town and/or MLH
26
ACCESSORY (SECONDARY) DWELLING UNITS* (promote)
An Accessory Dwelling Unit (ADU) is a second smaller home sharing a lot with a
single-family or townhome residence. Some examples of ADUs include an apartment
over a garage, a tiny house in the backyard, or a basement apartment.
Issues
In General
ADUs diversify the housing inventory by adding studio and one-bedroom units, many
in low and medium density residential areas.
Owners may want/need to occupy the ADU and rent larger home long term as their
family changes over time.
Requiring use of ADUs as long-term rental housing benefits local residents.
Compliance monitoring is needed.
Stock building plans could help facilitate development/ease cost and process for
owners.
Tiny homes could be built off site without construction disturbance to neighbors.
Examples: Crested Butte, CO; Truckee, CA (evaluating); City of Fort Bragg, CA (Free Second Unit Design program)
Mammoth Lakes Specific (see HNA, p. Part B (2) – 14)
Current code allows secondary dwelling units in all residential zones by right, consistent with Government Code Section
65852.2.
Secondary Dwelling Units are limited in size to 1,200 square feet and can be rented for terms of thirty days or more, but the
primary dwelling and secondary dwelling cannot both be rented. A recorded deed restriction or covenant is required that
acknowledges the municipal code requirements.
Session 2 Comments: Yes votes: 3 No votes: 0
Compliance of ADU’s for long-term rentals; promote flexible standards for ADU’s;
ADU’s attractive but monitoring compliance would be a problem; Monitoring could be done by TOT enforcement staff already in place;
Permit tiny homes for long-term rental and owner occupied.
*Five tools received a score of 3
votes
Potential Impact
How much: None permitted
since 2010
For whom: Typically below-
moderate (<150%)
27
Implementation Recommendations - Accessory Dwelling Units
Action Who When
Increase community awareness of ability to do ADUs:
Outreach to second homeowners
Website and postcard mailing
Other?
Town or MLH Near-term:
One to two
years
Explore variances such as side yard setbacks to make it easier to fit a
freestanding ADU Town or MLH
research
28
ZONING FOR AFFORDABILITY
Ensure that local regulations align with the desired outcome of increasing the supply
and diversity of housing choices for community residents. Zoning for affordability
includes allowing small lots for modest/tiny houses, complete neighborhoods,
live/work opportunities, and multi-family housing by-right in all or most zones.
Issues
In General
Land use codes may disincentivize housing development by driving up project costs
or disallowing the types of housing that might be affordable for local residents.
Complete code review through the lens of “does this policy create a barrier to
workforce housing?” and rewrite might be required. Local builders/developers are a
resource for how to make codes more favorable for smaller, more affordable housing.
Zoning for affordable housing may not be enough to stimulate private
sector/profitable development.
Live/Work units can help the market supply employee housing, but needs clear
regulations and covenants to help enforce use. Jackson, WY, has live/work units, but most are primarily either live or work
and few are occupied as true live/work.
Examples: Jackson, WY (mostly incentive based by zone); Breckenridge, CO; Crested Butte, CO
Mammoth Lakes Specific (See HNA, pp. Part B (2) – 13, 14, 15, 22, 27)
Town of Mammoth Lakes Municipal Code includes an Affordable Housing Overlay (on Shady Rest parcel only) for very low-
income to moderate-income housing. The Town Council may waive any or all development fees; development standards
for parking are relaxed and additional zoning concessions may be requested; and density bonuses are permitted.
Live/Work units are permitted in Commercial Zoning Districts. Live/work units have restrictions on occupancy, percentage
residential use, square footage, change in use, and rental. A Town approved covenant executed by the owner ensures that
the unit is used for its intended purpose.
Caretaker housing is allowed in the Industrial Zoning District where the principal use of the site involves operations,
equipment, or other resources that require 24-hour oversight. The occupants are limited to full-time employees of the
*Five tools received a score of 3
votes
Potential Impact
How much: TBD
For whom: Low to middle or
moderate (below 150%)
29
business, operation, or use. Presently two units exist. Many businesses have voluntarily built units in business parks and light
industrial areas in Jackson, WY, and Truckee, CA.
Transient rental permissions create a challenge for zoning for affordability. Where transient rentals are permitted,
development pressure is to build units for this use over non-transient residential due to the higher market value. Land values in
Mammoth Lakes reflect this – averaging 3-times more in RMF-2 ($38/sq. ft.), which permits transient use, than RMF-1 (about
$12/sq. ft.), which does not.
Session 2 Comments: Yes votes: 3; No votes: 0
Focus on small houses & transitional housing; create more AH overlay zone.
Implementation Recommendations – Zoning for Affordability
Action Who When
Explore Community Housing Overlay District that provides a flexible package of
incentives (fast track, fee waiver, density bonus/increase, etc.) for developers to build
community housing in priority areas and construct more mixed-use development.
Incorporate flexibility for Town, staff to tailor incentives and administratively
approve development components.
Identify the type of units that will be incentivized;
Require that all or significant portion of incentivized units are deed restricted
(affordability and/or occupancy restrictions): community housing.
Define where CHOD applies – proposed:
Commercial core, town owned lands, public lands that could be
transferred to the town, specified RMF 1 & 2 areas, downtown core
improvement areas identified in the Main Street corridor plan and as part of
the Draft Downtown Revitalization Plan, EIFD areas.
Incentives to consider to help encourage mixed-use development:
Shared parking;
Use Impact Fees to assist residential over commercial. Developer receives
credits/impact fee monies to fill in the gap between what would be collected
Town,
others??
Begin in near
term: 12 to 24
months.
30
through housing fees and the cost to develop;
If developer builds residential, then no or low impact fees on that portion of
development;
Housing planner on staff for assistance/developer support
Town-owned land – RFP for development can specify development desired.
Recruit and work with developer to create desired product.
Conduct outreach to developers to focus effective incentive package(s).
Explore expansion of RMF-1 zone – USFS acquired parcels, etc. Town Tied to CHOD
Explore further incentives/requirements for deed restricted housing in commercial and
industrial zones.
Town Tied to CHOD
Allow more housing options in the IP zone (Mammoth Lakes Foundation land);
increase density
Town, MLF Near term:
current
through 24
months
If incentives do not work, then require employee housing development in FAR zones:
If required to build, then developers will talk;
Need carrots with the stick – combine incentives with the requirement to build
housing.
Town Mid-term: four
plus years
COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT P.O. Box 1609, Mammoth Lakes, CA 93546 Phone (760) 965-3630 | Fax (760) 934-7493
www.townofmammothlakes.ca.gov
Page 1 of 2
To: Jennifer Halferty, Executive Director, Mammoth Lakes Housing From: Ruth Traxler, Associate Planner, Town of Mammoth Lakes Date: June 28, 2018 Subject: Housing Action Plan Progress Report
BACKGROUND: At the Mammoth Lakes Housing (MLH) Board of Directors meeting on June 9, 2018, the Board requested that a discussion on the Housing Action Plan be agendized for the next meeting. To inform this discussion, this progress report on the Housing Action Plan was prepared by the Town. This report provides a brief summary of background information on the Housing Action Plan, current status, and next steps. The Housing Action Plan (“Plan”) is the culmination of an intensive nine-month process involving a 24-member Housing Working Group led by WSW Consulting, Inc. (contracted by Mammoth Lakes Housing). The Plan addresses the roles and responsibilities required for a successful and comprehensive housing program in Mammoth Lakes and action strategies to meet the community’s housing objectives. The primary objective in the Plan is to provide an additional 200 to 300 housing units within five years, through a combination of new development, redevelopment, housing programs, and policies. The Housing Action Plan was accepted by the Town Council on December 6, 2017. It was acknowledged at the meeting that prior to the implementation of the action strategies, a transition period would be in place while a structure for roles, responsibilities, and capacity was defined and established.
CURRENT STATUS: There are several areas in which the Town is focusing during the transition period:
1. The formalization of roles and responsibilities in the housing program with the Town’s partners. This includes the contract with Mammoth Lakes Housing, and coordination with other entities such as the Chamber of Commerce, which has indicated a strong interest in the housing program, but acknowledges they do not have the staff capacity to take on assigned work programs. Attachment 1, Housing Program Roles and Responsibilities, reflects the recommendations made in the Housing Action Plan and Attachment 2 reflects the organization and responsibility structure specific to the Town and Mammoth Lakes Housing.
2. Adding staff capacity. It is understood by the Town that additional capacity is required in order to implement
a number of the action strategies. Through CivicSpark, an AmeriCorps program administered by the Local Government Commission, the Town will host one Fellow for an 11-month period beginning in September 2018. The Fellow will work on near-term action strategies from the Housing Action Plan. The Town has also prepared a draft Request for Proposals for a Housing Coordinator, to assist the Town through the transition period and prioritize and initiate implementation of action strategies. Additional capacities may be needed at other partner organizations, dependent on the Council’s prioritization of the action strategies. Additionally, the Town recognizes the current limitations at MLH, including the transition of current staff and the Executive Director position.
3. The Parcel (formerly known as the Shady Rest Parcel). The Town’s acquisition of and work on the development of The Parcel directly addresses several near-term and long-term action strategies. Town
Page 2 of 2
staff is working diligently through entitlement and development options and a report to Town Council outlining progress and possible action items is expected in August 2018.
4. Other actions by the Town. The Town has taken several other actions related to the strategies recommended by the Plan. With regards to Accessory Dwelling Units (ADUs), the Town has updated the Zoning Code pursuant to State legislation adopted in 2016 and 2017. Further, reduced fees for ADUs have been approved through the end of 2018 and the fees will be reevaluated in the coming year as a part of a larger program to address, and possibly incentivize, the construction of ADUs. The Town has also been working in coordination with MLH on the setup of the recent HOME grant for first-time homebuyer assistance and expects authorization to begin issuing loans in the next month.
NEXT STEPS: Finalizing the draft contract with Mammoth Lakes Housing and adding capacity, as described in items 1 and 2 above, are ongoing and expected to be completed within the next several months. Planning and development of The Parcel will continue to be the highest priority action strategy for the next several years, with initial construction anticipated within three to five years. The Town Council has tentatively scheduled a strategic priority setting workshop for August 2018. Based on the priorities set, staff input, timing, and funding, other near-term action strategies will be selected for implementation. The capacity that is expected to be added to the Town by September 2018 (i.e. CivicSpark Fellow and Housing Coordinator) will allow for meaningful work to be accomplished on identified housing priorities and related strategies. Attachments Attachment 1: Housing Program Roles and Responsibilities Attachment 2: Foundational Structure Organization and Responsibility Chart
ATTACHMENT 1
Housing Program Roles and Responsibilities
1
Responsibilities Roles Town Council Town Staff Mammoth Lakes Housing Chamber of Commerce Action priorities Set priorities for near, mid, and
long-term housing action strategies
Funding priorities Approve Town funding and grant funding for housing-related projects, programs, studies, and contracts
Accountability for Action Plan implementation
Accepted the Housing Action Plan, responsible to public for implementation*
Manage implementation*, provide updates to Council and the public*, maintain webpage*
Formation of contracts and commitments
Approve Town contracts for amounts greater than $50,000
Draft Town contracts and MOUs, manage executed contracts
Development regulations Draft development regulations to support housing priorities*
Provide expertise as requested, support housing studies to inform policy direction
Development incentives Draft policies to support housing priorities*
Provide expertise as requested
Land development / Public Private Partnerships (PPP)
Lead on Town land acquisition and development activities, including upcoming activities at Shady Rest*, review private and public development for compliance with housing policies and goals
Participate as requested
Federal and state grants / LIHTC
Research opportunities and make recommendations regarding grant and funding decisions, manage active grant reporting, monitoring, accounting, and activities
Assist with applications for and administer program-related grants, manage require reporting and compliance , non-profit partner on LIHTC development
STR / ADU amnesty program Draft policies to legalize unpermitted short-term rentals and accessory dwelling units*
Housing Program Roles and Responsibilities
2
Responsibilities Roles Town Council Town Staff Mammoth Lakes Housing Chamber of Commerce Local funding (EIFD, DIF) Lead effort to establish EIFD and
make recommendations on an annual basis or as needed to modify DIF
Public land acquisition / trades Initiate efforts to acquire/trade public lands through all possible means*
GIS database management Coordinate new GIS-based database to track community housing units, including deed restricted units and market rate units, and monitor conversions to STR and LTR*
Participate as requested, assist in database input*, complete annual apartment vacancy report
Housing programs Provide support as needed, review and process loan approvals
Manage homebuyer assistance programs and process qualifications, assist renter programs and process qualifications, develop program guidelines, annual filing of Claim for Welfare Exemption, research new related program and grant opportunities
Housing management (deed restrictions, qualification, monitoring)
Provide support as needed, including legal guidance with regards to deed restrictions and compliance, annual HOME program long-term monitoring, annual CDLAC reporting, code compliance for health, safety, and aesthetic issues that affect tenants and landlords
Manage and annually monitor all deed restricted units*, prepare new restrictions and rescind deed restrictions as needed, manage homebuyer and rental waitlists, annually monitor homebuyer assistance loan recipients, process capital improvement requests and refinancing subordinations, real estate services
Coordinate local tax initiative Lead on ballot initiative for a dedication of 2% of the Transient Occupancy Tax for a Housing Fund*
Housing Program Roles and Responsibilities
3
Responsibilities Roles Town Council Town Staff Mammoth Lakes Housing Chamber of Commerce Housing program education / outreach
Partner on education efforts as needed, update Town website with appropriate housing resources and information
Provide homebuyer education, maintain website with resources, inform community regarding fair housing and tenant rights, regular updates at public meetings, Spanish language services
Employer-assisted housing programs
Provide expertise and support as requested*
Develop programs to assist employers in supporting or finding housing for employees*
Employer coordination / outreach
Provide expertise and support as requested*
Disseminate new and existing housing program information to employers through written publications, meetings, and website*
STR property management incentive
Provide expertise and support as requested*
Develop program to incentivize short-term property owners to convert to long-term rentals with property management opportunities*
Other key roles Provide support to MLH and have presence at Board meetings, budget and track grant and housing-related expenditures and revenues, update Housing Element and report on annual basis to required state agencies, conduct studies and surveys as needed to evaluate housing needs
Maintain MLH’s public benefit corporation and tax-exempt status, maintain fiscally viable organization, maintain diverse Board of Directors, coordination on regional efforts, participation on the Board of the California Coalition for Rural Housing, certified Community Housing Development Organization for Mono, Inyo, and Alpine Counties, local/state/federal advocacy
Key: Lead Support * proposed new or expanded responsibility
ATTACHMENT 2
Housing Action Plan Foundational Structure
Organization and Responsibility Chart
PublicVotingPublic participationCommunity conversationsFunding through taxes
County Board of Supervisors
Regional housing decision-makingCommunication and collaboration with Town
Town CouncilHousing policy and funding prioritization / decision-makingStrategic alignment with Counties and NGOsResponsibility for Housing Action Plan
Mammoth Lakes HousingHousing programmingProperty and deed restriction managementOutreach and educationGrant application and support
Town ManagerTOML staff oversight and coordination
Community and Economic Development Director
Land Use RecommendationsConformance with General Plan and Zoning Code and applicable laws
Housing CoordinatorCoordinate contract with MLHDevelopment managementGrant coordinationHousing Element
Public Works DirectorInfrastructure project managementConstruction management Site development
Page 1 of 4
MAMMOTH LAKES HOUSING, INC. Board of Directors Meeting
Monday, June 11, 2018 Regular meeting at 6 p.m.
COUNCIL CHAMBER, 437 OLD MAMMOTH ROAD MINARET VILLAGE SHOPPING CENTER, SUITE Z
Minutes
I. Call to Order: The meeting was called to order at 6:02
II. Roll Call
Members present: Lindsay Barksdale, Stacy Corless, Zoraya Cruz, Tom Hodges, Jiselle Kenny, Kirk Stapp, John Wentworth, Donna Mercer (arrived 6:03 PM)
Members absent: Bill Taylor Staff: Jennifer Halferty, Executive Director and Patricia Robertson, Grant &
Financial Associate
III. Public Comments
Rick Wood made a public comment and stated that a dream of his has come true: that his youngest son was able to purchase a deed restricted one-bedroom
condo. His son is a long-time community member who has lived here his entire life. He thanked Mammoth Lakes Housing for assisting in the process, and for helping the underserved, and unserved members of the community.
IV. Approval of minutes from the May 7, 2018 regular board meeting Stacy Corless made a motion to approve the minutes. Jiselle Kenny seconded
the motion. The motion passed 7-0. Lindsay Barksdale abstained.
V. Discussion of MLH Board of Directors Composition and the June 5, 2018 Elections
Jennifer Halferty, Executive Director, gave an overview of the pending election results and the Mammoth Lakes Housing Bylaws, which permit no more than 1/3 of the Board members be public officials, employees or members of a public
entity, board or agency, or appointed by a public entity, board or agency. John Wentworth affirmed that he has been appointed by the current Town Council to
serve on the MLH Board and that his term continues until the new Town Council is seated and reorganized. Kirk Stapp noted that he would like to continue to serve on the MLH Board, but that it will be up to the new Town
Council. He noted that he will confirm with the Town Attorney if his abilities to currently serve on the MLH Board are impacted by his election to Town Council, despite not having been seated yet. Jennifer Halferty concluded that depending
on how the Town Council reorganizes after the new members are seated, the MLH Board of Directors may have a vacancy.
Page 2 of 4
VI. Recruitment for the Executive Director Position – staff direction and possible action Tom Hodges noted that the scope of the organization’s role with the Town
informs the requirements for the position. In the past, MLH completed housing development, but if that is not the case, perhaps we need a different skill set. He noted that the Town was planning to hire a Housing Coordinator to potentially
work on development issues, but stated that a $100,000 commitment was not sufficient to address the issue of workforce housing. Tom Hodges asked if MLH
should secure contracts with other entities including Mono County. Stacy Corless agreed. She explained that without knowing what the future looks
like, perhaps an Acting Executive Director position during this transition period would suffice.
John Wentworth stated that he didn’t know the status of the contract negotiations. Jennifer Halferty stated that MLH had still not received the draft
documents from the Town for the contract negotiations committee to meet and discuss.
Kirk Stapp noted that there are a lot of programs outlined in the Community Housing Action Plan as well as the Town’s other adopted and accepted plans.
He expressed the importance of getting the contract in place so that MLH could get to work on the strategies outlined in the Action Plan.
Lindsay Barksdale noted that Patricia Robertson, current Grant & Financial Associate, has been with the organization for the past five years and understands what we’ve been working on and the operations of the
organization. She asked what does an Interim/Transitional Role look like? She wants to know what the future looks like for the Sierra Manor Road property.
She asked if the Town and MLH were utilizing all of our resources in a collaborative and efficient manner? She liked the transitional plan scope that was proposed by the Raffa firm.
Donna Mercer explained that she liked the proposal from the Forest Group. She
explained that we are in a time crunch, and hiring a search firm is expensive, and we have a local person who already lives here and is willing to take it on.
There was staff direction to prepare a transition process staff report for the next meeting, to include appointing Patricia Robertson as Acting Executive Director, timing to hire a temporary staff person, and the status of contract negotiations
with the Town.
VII. Review and possible adoption of the draft Mammoth Lakes Housing 2018-2019 Fiscal Year Operating Budget The Board discussed the budget. Jiselle Kenny made a motion to adopt the
Mammoth Lakes Housing 2018-2019 Fiscal Year Operating Budget. Zoraya Cruz seconded the motion. The motion passed 8-0.
Page 3 of 4
VIII. Update on The Parcel, formerly known as the Shady Rest Parcel, for workforce housing owned by the Town of Mammoth Lakes – informational item
Sandra Moberly, Town of Mammoth Lakes Community & Economic Development Director stated that a team of Town staff are meeting weekly. Currently, hazardous trees are being removed from the site, which will be
donated to IMACA for their Low-Income Home Energy Assistance Program. She explained that more information will be available at the August 15th Town
Council meeting.
Kirk Stapp asked for clarification on when the public would be able to comment. Sandra Moberly noted that the public communication plan would be available
at the August 15th meeting and explain opportunities for public engagement. She also explained that the Town is working with the County to implement an online platform to more actively engage citizens.
IX. Board Member reports Tom Hodges commented that we need solutions now. Some of the strategies
that he is interested in are short-term rental conversation to long-term rentals and a downtown zoning district that incentivizes affordable housing.
Stacy Corless noted that the Board of Supervisors has been busy with budget workshops. The Board will decide where to allocate approximately $1-2 million
in excess revenue through a new process. She agrees that we need housing solutions sooner rather than later.
John Wentworth noted that housing was a significant campaign issue. He advised the Board that there would be a new council representative allocated to work on the MLH-Town contract since Colin Fernie will no longer serve on the
Town Council. He also noted that MLH should expect to receive a letter from the Town attorney regarding the Town’s opinion of the Community Housing
Development Organization (CHDO) certification that MLH currently has, which allows MLH to secure grant funding independently.
Kirk Stapp noted that he has been on the MLH-Town contract negotiations committee and will ask the Town attorney if there is an issue with this moving
forward. He noted that ESTA has had a very difficult time recruiting a new Executive Director and that they are considering to promote from within.
Lindsay Barksdale asked if we could agendize a discussion of the Housing Action Plan. The Board will hold a workshop of the near-term action strategies at the July 2 meeting.
Donna Mercer asked for more information regarding funding levels for housing
and Mammoth Lakes Housing over time. Staff will provide her with this information.
Page 4 of 4
X. MLH Monthly Status Report Jennifer Halferty reported that MLH is receiving a high volume of rental applications, and there are currently 70 households on the rental waiting list.
Staff has processed two USDA home loan applications, and it’s great that the word is getting out about this program.
MLH sold a deed restricted one-bedroom unit at Meridian Court to a household earning below 80% of the area median income, utilizing down payment
assistance funds from the BEGIN Revolving Fund Balance. During closing a new 60-year deed restriction was recorded, securing the affordability. Also through this sale, MLH repaid the Revolving Loan Fund to Mono County. Staff
will provide an RLF update to the Board of Supervisors at their June 19 meeting.
The contract negotiations committee has met twice. MLH is waiting for the draft
documents from the Town so that the MLH committee can meet and review.
Jennifer Halferty announced that she met with John Head on his Arch Cabins
project which is proposed to take place in June Lake, providing new rental units in Mono County.
XI. Adjourn: the meeting was adjourned at 7:51 PM.
Agenda Item _ July 2, 2018
AGENDA BILL
Subject: Update and Discussion of MLH – Town of Mammoth Lakes Draft Contract
Presented by: Jennifer Halferty, Executive Director
The Mammoth Lakes Housing (MLH) staff and ad hoc contract committee have met three times to review and discuss the draft contract between MLH and the Town of Mammoth Lakes. The first two meetings were with Town staff and Council Member Fernie, and the most recent meeting was with MLH staff and the ad-hoc contract committee (June29, 2018).
The staff and committee will have a report out to the full board at the July 2, MLH Board of Directors meeting.
MISSION:
Mammoth Lakes Housing, Inc. supports workforce housing for a viable economy and a sustainable community.
Agenda Item VII
July 2, 2018
STAFF REPORT
Subject: Transition Plan for the Executive Director Position
Presented by: Jennifer Halferty, Executive Director &
Patricia Robertson, Grant and Financial Associate
EXECUTIVE DIRECTOR TRANSITION PLAN
Purpose: In accordance with Mammoth Lakes Housing (MLH) board consensus at their June 11, 2018
meeting, Patricia A. Robertson will be taking on the role of Acting Executive Director of MLH. Outlined
below is the transition plan.
Term: Patricia shall begin in the Acting Executive Director role on August 6, 2018 and will conclude on
February 6, 2019 (six months) or sooner, should the position be filled with a permanent Executive
Director.
Compensation: A bi-weekly stipend of $1,300 shall be included with Patricia’s regular bi-weekly base
pay. This is recommended compensation for the added work and responsibility of filling the Acting
Executive Director position.
Temporary staffing: Temporary support staff will be retained to fill as many roles of Patricia’s current
position, Grant and Financial Associate, as reasonably possible. MLH is working with Sierra Employment
Services for this service. The goal is to have this positon staffed up for training beginning the week of
July 30th. Costs associated with this temporary position will be funded from the Contract Labor line item
in MLH’s operating budget, not from Salaries and Wages. Therefore, it is recommended that a mid-year
budget adjustment be made from the one expense line to the other, according to the costs.
California Broker License Services: MLH and Jennifer Halferty, MLH’s California Licensed Broker, shall
enter into a pro bono agreement for services for the time that it takes Patricia to obtain her Broker’s
License, which is estimated to take roughly 6-9 months.
California Coalition for Rural Housing (CCRH): Staff will work with the Executive Director and
Nominations Committee of CCRH in accordance with their policies for a possible appointment of Patricia
to the Board.
Sherwin Plaza III Homeowners Association Board of Directors: MLH owns a commercial condominium
at Sherwin Plaza III. Jennifer serves on that Board as the Secretary. MLH staff will work with the HOA
Board on replacing Jennifer with Patricia and the HOA paperwork necessary for that transfer.
Contacts/emails/phone/etc.: Staff will establish transfers and forwarding services as appropriate.
Training: Over the course of the transition, staff will work together to train in areas of need. Staff will
also train the new temporary staff upon onboarding.
Bank signature cards: In accordance with MLH policy, two signatures are required on all checks. The
Board has authorized three signers to the MLH accounts: Bill Taylor, Kirk Stapp, and Jennifer Halferty.
Checks are signed weekly in the MLH office. Patricia should be added and Jennifer should be removed as
one of the three signers.
RECOMMENDATION
Staff recommends the board approve the transition plan as presented, or with any modifications, and
approve adding Patricia Robertson and removing Jennifer Halferty as a signatory to all of the
Corporation’s Union Bank of California, N.A. (UBOC) accounts: #3721965980; #3720033290;
#3720014113; #0100297760; and #0090740725.
Agenda Item VIII
July 2, 2018
STAFF REPORT
Subject: MLH Reserve Accounts and Dedication of 2017/18 Support & Revenue
over Expenditures Funds
Presented by: Jennifer Halferty, Executive Director &
Patricia Robertson, Grant and Financial Associate
MAMMOTH LAKES HOUSING ESTABLISHED RESERVE ACCOUNTS
Operations Risk Reserve: $160,000
Star Apartment Reserves: $43,177
Sierra Manor Rd. Property Reserves: $385,279
SUPPORT & REVENUE OVER EXPENDITURES
Non-actual/Forecasted $46,924
Optional use(s) of funds:
A. Increase operational budget line for legal counsel due CHDO & Town Contract - FY 2018/19
budget is $10,704 and spent roughly $17,307 FY 2017/18
B. Deed Restriction Retention – FY 2018/19 budget is $25,000 and spent roughly $38,000 FY
2017/18
C. Depreciation – Computer replacement fund – company laptops are eight years old and may
need replacement within the next five years
D. Executive Director Position Recruitment - outside firms range from $28,000 - $42,000
E. Invest in Sierra Manor Road Property – create long-term affordable rentals and having
funding for leveraging outside funding and development contingencies, etc.
Agenda Item IX July 2, 2018
AGENDA BILL
Subject: Consider HOME Application for Rental Rehabilitation project Presented by: Patricia Robertson, Grant & Financial Associate
Jennifer Halferty, Executive Director
MISSION:
Mammoth Lakes Housing, Inc. supports workforce housing
for a viable economy and a sustainable community. BACKGROUND: On June 8, 2018, the California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability announcing the availability of approximately $72 million in funds under the HOME program (the “NOFA”). More recent previous NOFAs have had substantially less funding available. These funds will be used to meet the following statewide goals from HCD’s 2015-20 Consolidated Plan for low-income households earning at or below 80% of the Area Median Income (AMI) by:
Increasing the supply of affordable rental housing,
Expanding homeownership opportunities and improving existing housing, and
Providing homeless assistance and prevention services. Funds are set-aside for projects and programs accordingly:
15% of funds are reserved for Community Housing Development Organizations (CHDOs)
55% for rental projects
50% for rural areas
40% for programs
5% for ownership projects The application deadline is August 6, 2018 and awards will be announced in December 2018. The application requires that the Board of Directors approve a resolution authorizing the application.
ANALYSIS: In October 2017, Mammoth Lakes Housing purchased the commercial property located at 238 Sierra Manor Road with the intention to convert the two buildings into twelve (12) residential apartments. In November 2017, MLH applied for Community Development Block Grant (CDBG) funding in partnership with the Town of Mammoth Lakes for the conversion of one of the buildings into 10 apartments. As of the publishing of this staff report, the official notification of the awards has not been made. The 2018 HOME Program NOFA allows rental rehabilitation projects to apply for up to $5,000,000 in funding. Staff attended the Project NOFA Training on June 18th and has been encouraged by HCD to apply, given the amount of funding available and the fact that grantees that received 2015 and 2016 awards are likely ineligible because they have not spent 50% of their current, open awards. This project addresses the need cited in the 2017 Town of Mammoth Lakes Needs Assessment which found that, Rentals have been and are in tight supply. Rentals support businesses in need of workers and help new residents get a foothold in a community.
As depicted by the blue shaded rows in the below table, about 50% of rentals (160 total) should be priced below market.
Most new units should be priced below about $1,200 per month, or up to $1,400 per month if utilities are included. These would be affordable for households earning below 80% AMI (about $25/hour).
Emphasis should be on studio, one and two bedroom rentals since there is insufficient diversity in the existing inventory.
Renters want their units to be kept well maintained and in good repair.
Renters want pet-friendly units (p. 8). This project will help move the Town toward achieving their goal of 200-300 units in the next five years (Community Housing Action Plan, p. 10). This project is consistent with the Mammoth Lakes General Plan Vision Statements and Housing Element Goals (2014-2019): General Plan
2. Being a great place to live and work. Our strong, diverse yet cohesive, small town community supports families and individuals by providing a stable economy, high quality educational facilities and programs, a broad range of community services and a participatory 'Town government.'' 3. Adequate and appropriate housing that residents and workers can afford.
Housing Element Goal H.1: Assure adequate sites for housing development with appropriate land use and zoning designations to accommodate the Town’s share of the Regional Housing Need. Goal H.2: Promote construction of an adequate supply of housing to meet the needs of all sectors of the community, including the conservation and improvement of existing housing supplies. Goal H.3: Maintain high quality, livable housing units and neighborhoods in Mammoth Lakes.
RECOMMENDATION Therefore, it is recommended that the MLH Board approve Resolution 18-07, authorizing Mammoth Lakes Housing, Inc., a certified Community Housing Development Organization, to prepare and submit an application for funding, for the rental rehabilitation project located at 238 Sierra Manor Road, for up to $5,000,000. ATTACHMENT Resolution 18-07
RESOLUTION No. 18-07
A RESOLUTION OF THE BOARD OF DIRECTORS OF MAMMOTH LAKES
HOUSING, INC. AUTHORIZING THE SUBMITTAL OF A APPLICATION TO THE
CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT
PARTNERSHIPS PROGRAM; AND IF SELECTED, THE EXECUTION OF A
STANDARD AGREEMENT, ANY AMDENDMENTS THERETO, AND OF ANY
RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME
INVESTMENT PARTNERSHIPS PROGRAM
WHEREAS:
A. The California Department of Housing and Community Development (the
“Department”) is authorized to allocate HOME Investment Partnerships Program
(“HOME”) funds made available from the U.S. Department of Housing and Urban
Development (“HUD”). HOME funds are to be used for the purposes set forth in
Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in
federal implementing regulations set forth in Title 24 of the Code of Federal
Regulations, part 92, and in Title 25 of the California Code of Regulations
commencing with section 8200.
B. On June 8, 2018, the Department issued a Notice of Funding Availability announcing
the availability of funds under the HOME program (the “NOFA”).
C. In response to the June 2018 HOME NOFA, Mammoth Lakes Housing, Inc., a
Mammoth Lakes Housing, Inc. (MLH) a nonprofit public benefit corporation
established under the laws of California and certified Community Housing
Development Organization (the “Applicant”), wishes to apply to the Department for,
and receive an allocation of, HOME funds.
IT IS NOW THEREFORE RESOLVED THAT:
1. In response to the June 2018 HOME NOFA, the Applicant shall submit an
application to the Department to participate in the HOME program and for an
allocation of funds not to exceed five million Dollars ($5,000,000) for the following
activities and/or programs:
The conversion of commercial property to rental apartments to serve households
earning below 80% of the Area Median Income
to be located in the Town of Mammoth Lakes.
2. If the application for funding is approved, then the Applicant hereby agrees to use
the HOME funds for eligible activities in the manner presented in its application
as approved by the Department in accordance with the statutes and regulations
cited above. The Applicant may also execute a standard agreement, any
amendments thereto, and any and all other documents or instruments necessary or
required by the Department or HUD for participation in the HOME program
(collectively, the required documents).
3. The applicant authorizes the Executive Director or his/her designee(s) to execute,
in the name of the applicant, the required documents.
PASSED AND ADOPTED THIS 2nd
DAY OF July 2018, BY THE FOLLOWING VOTE:
AYES:_____ NAYS:_________ ABSTAIN:_______ ABSENT:________
The undersigned Board President of the applicant does hereby attest and certify that the
foregoing is a true and full copy of a resolution of the governing board of the applicant passed
and adopted at a duly convened meeting on the date set forth above, and said resolution has not
been altered, amended, or repealed.
_________________________________ ________________
Signature Date
Agenda Item XII
1
JULY 2018 - Mammoth Lakes Housing Status Update
1) Community Resource
a) Wait-List Management
1) 71 low and very low income households currently on the rental waiting list
b) Application distribution, provide program/project information
1) Distributed eleven (11) rental, rehab, and purchase applications
2) Answered fourteen (14) rental inquiries via phone/email/walk-ins
3) Answered five (5) ownership inquiries via phone/email/walk-ins
4) Answered two (2) tenant’s rights inquiries
2) Housing Program Development, Management and Maintenance
a) Staff processed two (2) USDA home loan applications, three (3) Kitzbuhl applications,
and three (3) rental applications.
b) Occupancy Tracking is at 85% complete, and late notices have been issued. Remaining
noncompliant homeowners will be called for follow up.
3) One 60% AMI 2-bedroom at Aspen Village was filled with a single mother who works in the tourism/hospitality industry.
4) Down Payment Assistance-
1) Currently there are Town HOME Program Income funds available (approximately
$14,600) and an approved homebuyer is shopping for a suitable home.
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
Jun
2018
Jul
2018
Aug
2018
Sept
2018
Oct
2018
Nov
2018
Dec
2018
Total
Visitors 958 217 858 915 763 627
% New
Visitor
Sessions 61% 73% 81% 79% 79% 79%
Pages
per Visit 2.38 2.33 1.77 1.9 1.96 2.34
Length
of Visit
(mins) 2:19 2:42 1:33 1:42 2:13 2:08
%
Mobile
Device 53% 50% 49% 48% 53% 49%
Agenda Item XII
2
(a) An approved homebuyer closed escrow on June 15th on a home in Mammoth
Lakes utilizing the HOME Program Income funds. The homebuyer is self-
employed in the recreation industry.
2) The Town was awarded $500,000 from the HOME Program in July 2017. The
contract from the State was executed by the Town in December 2017. The grant
funds will be available when the grant set-up is completed. MLH has submitted the
set-up package to the State and is awaiting approval.
3) The Mammoth Lakes BEGIN Program has approximately $63,200 available.
5) Deed Restriction Management
a) There are no deed restricted homes currently on the market.
5) Administration of Local Housing Trust Fund and Other Funding Opportunities
a) Staff submitted a letter of intent (LOI) to Enterprise Communities for a predevelopment
grant for the 238 Sierra Manor Road adaptive reuse project. MLH was eligible to apply due
to their Community Housing Development Organization (CHDO) certification.
6) Market Analysis MLH staff tracks the real estate market for the potential sale of deed restricted units and overall
activity.
a) There is one BEGIN eligible home on the market at Meridian Court.
b) Median home sales figures for Mammoth Lakes taken from the Mammoth Lakes Multiple
Listings Service (MLS):
2012
Single family: $575,000
Condominiums: $244,000
2013
Single family: $575,000
Condominiums: $260,500
2014
Single family: $619,000
Condominiums: $292,500
2015
Single family: $860,00
Condominiums: $305,000
2016
Single family (93): $714,000
Condominiums (304): $299,750
2017
Single family (89): $775,000
Condominiums (408): $349,950
2018
Single family (33): $890,000 (as of 06/28/2018)
Condominiums (165): $389,000 (as of 06/28/2018)
7) Coordination with Town of Mammoth Lakes
Agenda Item XII
3
a) Staff met with the Town Manager regarding transition planning for both the Executive
Director Positon and the Town Council representative to serve on the MLH Board.
b) MLH staff and the contract committee met to review the draft Town contract deliverables.
The Town Manager is proposing to not execute the contract until later in the summer, once
the Town has completed their strategic planning session.
